No possibility of Tide Water's hostile takeover by Standard Greases: Andrew Yule

Kolkata-based Andrew Yule & Company, which holds 26 percent shares in Tide Water Oil, on Thursday said it doesn't see the possibility of a hostile takeover of the later as reported in the media recently.

"As such, we do not see the possibility of a hostile takeover or any major structural change in the company's (Tide Water Oil) management due to this open offer," Andrew Yule's chairman and managing director Kallol Datta told media persons here.

His comments came in wake of the recent media reports over Mumbai-based Standard Greases and Specialties' open offer for acquisition of 25 percent shares in Tide Water Oil.

"Andrew Yule & Co holds 26.22 percent of Tide Water Oil's shares and is the only promoter of the company," he said.

Datta claimed he has received written approval from United India Insurance and LIC - which holds 6.88 and 4.22 percent shares respectively in Tide Water Oil - over their decision of not to sell their stakes.

Besides, he claimed that Tide Water Employees Welfare Trust, which holds another 2.46 percent in the company under question, will also retain their stakeholding.

Besides, Datta claimed that the open offer will not generate much enthusiasm.

"It is not likely to get a very favourable response at the offered price," he said.

Standard Greases and Specialties' open offer has quoted Rs.16,632 per share against the current market price of Rs.17,900 per share, according to the diversified Andrew Yule & Co.

Asked if his company is planning for a response to the open offer, Datta said: "As per the SEBI guidelines, the regulator will be asking for our statement first."

"We have already clarified the same to the Indian government and the government doesn't like hostile takeovers," he said.

The central government holds 88 percent stake in Andrew Yule & Co which is under the department of heavy industries.

"The government has full confidence in the current management of Tide Water Oil and there is clearly no immediate intention of disinvestment of our holding in Tide Water Oil," he added.